The following information was taken from the financial statements of Ashley's Linens: Total current assets
$ 53,000
Property, plant, and equipment
6,000
Current liabilities
21,000
Long-term liabilities
4,000
Owner's equity
34,000
Beginning inventory
31,000
Ending inventory
33,000
Cost of goods sold
152,000
Net income
42,000

The working capital of Ashley's Linens is

Question

The following information was taken from the financial statements of Ashley's Linens: Total current assets
$ 53,000
Property, plant, and equipment
6,000
Current liabilities
21,000
Long-term liabilities
4,000
Owner's equity
34,000
Beginning inventory
31,000
Ending inventory
33,000
Cost of goods sold
152,000
Net income
42,000
​
The working capital of Ashley's Linens is

Quizplus · Accepted Answer

Working capital is calculated as total current assets minus current liabilities. Therefore, $53,000 (current assets) - $21,000 (current liabilities) = $32,000.

The Following Information Was Taken from the Financial Statements of Ashley's